Study On Optimal Allocation Of Water Resources In Yunnan Province

The water conservancy is the foundation industry in economic and society.In the background of developing modern agriculture, with the transformation of economic structure and under the call of the income multiplier, water conservancy investment plays an important role in other industries and income distribution. Yunnan province increased the investment of water conservancy after four consecutive years of drought.But at the same time, it have appeared a downward trend in GDP, in the output value on the primary industry, in the rural residents’ income and the employment in Yunnan province. In the past year,Yunnan province faced a big test in macroeconomic. The state council pointed out a proactive fiscal policy to prevent the economy from slowing down too mush in 2015. In order to be better serve for the economic and social,the water conservancy project in Yunnan need to be optimized configuration.Based on the above background, using the social accounting matrix multiplier analysis method and the static CGE model to optimizing the allocation of water conservancy investment structure and the growth rate of the total. Not only considering from the short-term optimization configuration, but also thinking on the trend in the future. Many scholars analyzed the water conservancy investment, few will subdivide water conservancy into small departments.They looked it as a whole variable to test or simulate the effects on investment. The paper subdivided water department into the service for irrigation,the water production and supply industry, the water conservancy industry and the water architectural industry. With the goal of GDP,the output value on the primary industry, the rural residents’ income and employment,optimize the structure and the growth of water conservancy investment.Firstly,the paper studied the changes in the recent years in economic and social by water conservancy investment in Yunnan province.In order to maintain economic prosperity, the government should optimize the investment structure and investment growth rate. Secondly, compiled the Yunnan water social accounting matrix. Thewater conservancy investment has a certain role in promoting the development of economy in Yunnan province, but the different water departments play the pull function on the economic is different. The strongest pull function is irrigation industry in GDP,the income of rural residents and employment, the water production and supply industry is the weakest.The other two departments about the influence on the economy is the same. We should be preferred to expand the investment in irrigation industry and reduce water production and supply industry according to the multiplier analysis. The water management and water architectural industry should be maintaining the proportion in the past.In order to bring the increase of output and income,both should be invest in key water project, densely populated area and the major grain producing areas.The growth rate of investment from 8.62% to 10.34% is the reasonable level according to the CGE model analysis. Because of ignoring some factors,growth rate should be increase appropriately as possible. Finally, according to the water conservancy investment trends in the future, we proposed some policy suggestions to Yunnan province on how to increase income of rural residents, how to expand sources of capital and improve the ability of irrigation.